Wei Wants To Please Chinese Market: Cut Swimsuit Product Line.

According to the world clothing shoes and hats net, in July 6th, Victoria 's Secret

The L Brands group (NYSE:LB), the parent company, released its sales data in June, and the results were not satisfactory.

The data showed that the group's net sales were $1 billion 200 million in the first five weeks of July 1st, down 6% from the same period last year, and the stock price fell by 13.4%.

June was the month when the Group recorded sixth consecutive sales declines, and the group's overall same store sales plunged 9%, which was worse than market expectations of 7%.

The reporter sent an interview letter to the L Brands group, the parent company of the Wei family, on the related issues. His PR company staff replied that on the one hand, it was the cause of the jet lag. On the one hand, it involved the sales figures.

Cut swimwear product line and shop sales decline

Public information shows that L Brands has Victoria 's Secret, girls' underwear.

PINK, mainly sells skin care products and shower gel Bath & Body Works.

Brand La Senza and sell jewelry, accessories Henri Bendel 5 brands.

Among them, Victoria 's Secret and Bath & Body Works are the two most important brands.

In the earnings report of L Brands, the sales of the two brands were listed only, and the information of the other three brands was not mentioned.

In the latest sales figures released in June, although the Bath & Body Works achieved 8% of the same store sales growth, Victoria 's Secret Secret declined by 17%, the worst month in nearly 7 months, far exceeding the 11.9% of the market forecast.

The group said that last year's exit from swimwear product line was the main reason for the decline in performance.

In fact, the unsatisfactory results of L Brands also reflected in the first quarter of this year's earnings report.

The net sales of L Brands in the quarter were $2 billion 437 million, a 7% decline compared with last year's 26.14 billion performance.

Among them, Bath & Body Works sales amounted to $678 million, up 2% over the same period last year; Victoria 's Secret's performance was not satisfactory, compared with the same period last year, sales fell by 14% to $1 billion 553 million, while same store sales fell 10%.

In this regard, L Brands also mentioned that the exiting of swimsuit lines has brought adverse effects to the group.

In April 2016, L Brands announced that Victoria 's Secret would cut swimsuit product lines.

According to the US News website Buzzfeed, L Brands cut swimsuit business to make more room for sports and leisure products sales.

Last year, L Brands also made reforms to Victoria 's Secret, including the cancellation of mailing catalogues, restructuring and layoffs.

Roland Begg management consulting company project manager Jiang Yunying analysis, L Brands's Pink brand, Victoria 's Secret sports product line and Bath & Body Works are the main driving force to support its sales.

In addition, although Victoria 's Secret has occupied about 21% share in the underwear market in the past five years, it can not be denied that the decline from the same store sales means that it has encountered bottlenecks in the subsequent growth, and there are certain problems.

The experts said that the change of consumers and the increasingly fierce competition are the reasons for accelerating the decline of Victoria s Secret.

Whether in the US or in the Chinese market, the sexy economy has not been so sexy in the past few years.

From a number of consumer goods and luxury goods report, we can see that the past consumers may choose to wear underwear, but the younger generation of consumers is looking for self-confidence and health.

Their definition of sex has changed, influenced by fashion trend. Nowadays, it is not the model of big milk that is popular. The model of breast milk can also be very confident.

The popularity of sports and leisure has made it more popular to have no steel ring underwear, thin underwear and sports underwear that can be worn out.

The change of consumer preferences will affect the development of brands. The younger generation's sexuality is different from that of the former, which means that when the brand is going to make a new trend underwear, the traditional products will be impacted and the stock will increase.

Last year, following the trend of sportswear, Victoria 's Secret launched the thin bra Bralette, which is more comfortable without gaskets and steel rings.

At the same time, the sports line of Victoria s Secret is facing great pressure.

"From the competitive situation of sportswear and underwear, apart from focusing on underwear brand, many sports brands and fashion brands have joined the war. In the underwear market in the United States, 3 of the top 10 brands are sports brands (Nike, Adidas and Under Armour), and in the top 20 of the list, H&M, Forever 21 and other fast fashion are also coming in.

Jiang Yunying said.

Yang Dayun, CEO of Cci Capital Ltd, believes that the problem of sales decline can be considered in two ways: "first, the beginning of the aging of the secret brands, and the attractiveness and freshness of young consumers are losing. For example, it is worth noting that the ratings of the" Wei Ming show "dropped from 32% in 2015 to 32% in 2016 and 9% in 2016.

Secondly, the US entity retail industry has been severely hit from last year to this year. Many clothes and fashion enterprises began to go bankrupt and close down, including the familiar Messi department store. This is mainly because the consumption in the US market tends to be saturated, and the market is also shrinking. The above two reasons are stacked together, which eventually leads to the decline in the performance of the company today.

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Can the positioning of high-end sexy lines delight the Chinese market?

Despite the fact that China's market data are not released in the latest earnings report, L Brands has great hopes for emerging markets, especially China.

L Brands has publicly stated that China is "an important market in the future", but it has been cautious in its development in the Chinese market.

In 2009, Liu Wen became the first Chinese supermodel to get on the Victoria 's Secret Secret show. In 2015, Victoria' s Secret began to set up stores in the mainland of China, but the store was not operated directly by L Brands, but was represented by Malaysia Valiram group, and these stores only sold perfume, beauty products and accessories, but did not include underwear for core products.

Since 2016, L Brands has reclaimed the right of operation of the Victoria 's Secret 20' stores in China from the Chinese agents, and intends to operate in person.

In February, Victoria 's Secret officially opened in the mainland's first flagship store in Shanghai's Li Bao Plaza. Stuart Burgdoerfer, executive vice president of L Brands CFO, said it expects the store to sell more than $800 per square foot, and is optimistic about the potential of Chinese consumers.

Subsequently, it also opened a direct store in Chengdu.

Not only that, LBrands, however, is more and more keen on the growth of China's market. Last year, China's supermodel record reached 4 points (Liu Wen, Xi Mengyao, He Sui and Ju Xiaowen) in the Secret Angels of Paris's secret show, and the show was based on Chinese elements.

Earlier this year, the news showed that in 2017, the secret show will be pferred to Shanghai. This is the first time that it has held a press conference in Asia.

"For the Chinese market, Wei is actually looking at it for a long time, but has not yet sold the core underwear products.

The flagship store and the opening of more "Chinese angels" and so on, in fact, the message is that in order to stabilize the whole market, the group tries to make certain volume in the Chinese market.

Jiang Yunying believes that there is an opportunity for China to enter China on a large scale.

"China's underwear market will predict the growth rate of 7%~8% in the future. Compared with the overseas market, China's underwear market is extremely backward. Most people feel that the underwear may be just a demand, and the recognition of the brand is relatively weak. That is also to say that the market is immature, immature means the possibility of further development, coupled with China's population, from the aspect of the volume of the consumer side, it is not ruled out that large-scale entry into China is the right step."

"But what I want to talk about more is the risks behind it. The development of China in Wei is restricted by consumer habits, the perception of the market and the localization of sports brand."

Jiang Yunying said that China's second-class market has a better income elite, and those who often travel to know a lot about it are the main consumers of Wei.

But most people's knowledge of Wei is only heard or word-of-mouth.

In the United States, it is located in the mass market. From the perspective of opening a store, it is a relatively high-end position in China. Whether the Chinese people will buy it or not will have to wait and see.

And consumer shopping has become more smart and rational, coupled with the rapid development of China's electricity supplier, consumers can buy through the electricity supplier, high-end consumers can buy through the sea, buy on behalf of.

In addition, in China, sports brands such as Nike and Adidas have brought sports and leisure underwear to China very early. Their localization has been doing quite well, and consumers are facing greater challenges for the consumption of this piece of goods to be pferred to "Wei Ming".

Da Yun also talked about the problem of consumer habits. "The test of Chinese market has been used for many years. Now, it will include products such as fragrance, aroma, bath and underwear. This kind of sales method is not in China, which means that consumers' habits have not been formed, and I am afraid there is a stage of adaptation. The products of the" Wei "products are more suitable for white people from the perspective of color and taste. If they want to stay in China, they need to make some localization adjustments to the Asians. With the development of the Internet, the choice of commodities is rich, and consumers' blind identification of foreign brands has gradually become the past, and the development of China in China may not be as ideal as it expected. Yang

"The growth of the Chinese market also depends on the distribution of more sales outlets and online retail outlets," Jiang Yunying said. "In the next two or three years, the company will open a store in a second tier city and use the core city's strategy to do it, and it will not accept the three or four line."

It is understood that the store planning in Hongkong, Beijing, Chengdu, Guangzhou, Nanjing and other cities is in preparation.

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